Through refundable tax credits, the Province provides relief to low- to moderate-income Ontarians for the taxes and energy costs they face. Through the Ontario Trillium Benefit (OTB), the Province transformed the delivery of Ontario’s key refundable tax credits by making payments to Ontarians earlier and more frequently than before. This approach ensures that the payments better match when people incur these costs. In the past, most refundable tax credits were paid once a year, after people filed their tax returns.

The Province is providing a total of $2.4 billion each year through the OSTC, OEPTC and NOEC. The payments of these three credits will be combined and delivered monthly as the OTB, starting in July 2012.

Eligibility

You must be eligible for at least one of the OSTC, OEPTC or NOEC to receive the OTB. For more information on eligibility requirements for these credits, visit ontario.ca/taxcredits.

Application

To apply, you must complete Ontario Form ON-BEN which is part of the 2011 T1 General Income Tax and Benefit Return package and file it with the Canada Revenue Agency (CRA). The normal deadline for filing individual tax returns is April 30th each year. Failure to file by this deadline may result in delay in receiving OTB payments.

Direct Deposit

To ensure timely delivery of payments, benefit recipients can have payments deposited directly into their bank accounts.

For the OSTC, OEPTC, NOEC and other federally-administered benefits, recipients can request direct deposit using the ‘My Account’ service or by completing a Direct Deposit Request form available on the CRA website. Help in completing the form is available by calling the CRA at 1 800 959-8281.

Tax Filing Assistance

There are no-cost ways to file a personal tax return.

People with simple tax returns may be able to use the CRA‘s Telefile service to file by telephone, or free tax preparation software from a variety of online services.

The Community Volunteer Income Tax Program is a partnership between the CRA and various community organizations through which volunteers in communities help eligible people who are not able to prepare their income tax and benefit returns by themselves.

For more information about the volunteer tax preparation clinics visit www.cra.gc.ca/volunteer or call the CRA‘s individual income tax enquiries line at 1 800 959-8281. New clinics are added as they become available, especially leading up to the tax filing deadline.

Illustrative Examples (Using 2011 Credit Amounts)

Example 1:

A single parent with one child and adjusted net income of $20,000 paying $629 per month in rent would receive a total of $936 from the OSTC and OEPTC over eight payments. Under the proposed OTB, the single parent would receive 12 equal monthly payments.

2012

2013

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Total

Current ($)

–

133

101

–

133

101

–

133

101

–

133

101

936

OTB ($)

78

78

78

78

78

78

78

78

78

78

78

78

936

Example 2:

A senior couple with adjusted family net income of $35,000 paying $1,200 per month in rent would receive a total of $984 from the OSTC and OEPTC over eight payments. Under the proposed OTB, the couple would receive 12 equal monthly payments.

2012

2013

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Total

Current ($)

–

37

209

–

37

209

–

37

209

–

37

209

984

OTB ($)

82

82

82

82

82

82

82

82

82

82

82

82

984

Example 3:

A family of four with adjusted family net income of $25,000 paying $920 per month in rent would receive a total of $1,536 from the OSTC and OEPTC over eight payments. Under the proposed OTB, the family would receive 12 equal monthly payments.